Anne Sanborn November 23, 2019 FamilyBudget
List your income, how much and when during the month that you receive it. Then, list your recurring expenses - how much, to whom and when during the month that you pay them. Next, ballpark any other expenses you can come up with off the top of your head - things like groceries, gas, etc. and list those too. All of these steps can be done with just you and your spouse, a pad of paper and a pen or pencil. If you want to get a little fancy, a spreadsheet or simple budgeting software can help a lot.
In most cases, the possibilities are that your family follows some kind of budget or household planning, which suggests that you most likely keep track of what your monthly bills are and put aside a sufficient quantity for all your daily expenses. However, by the end of the month, you might barely be getting by and still feeling the stress that poor money management can incur. A good family budget worksheet will make it possible to cover every single penny you decide to spend. Fortunately, various kinds of budget software have been made available that can assist you with remaining well on track and reaching all your financial goals.
To avoid running out of money because expenses occur before the money actually arrives a "safety cushion" of excess cash (to cover those months when actual income is below estimations) should be implemented. There is no easy way to develop a safety cushion, so you will have to spend less you earn. Developing a cushion can be a challenging particularly when starting during a low spot in your earning cycle, although this is how most budgets begin. In general, personal and family budgets that start out with expenses that are 5% or 10% below your average income and should slowly develop a cushion of savings that can be accessed when earnings are below average. Whether this rate of building your cushion cushion is fast enough depends upon on how variable your income is, and whether the budgeting process starts at a high or low point during the earnings cycles.
Any software or template should be able to divide all your spending into detailed categories. It should also include spending that may not occur every month. These types of spending will then need to be included in your monthly budget and set aside; that way when you need the money for something like an unexpected oil change for your car or a present for a friend, the money will be available and will not hit you as a surprise. These are just few of the things that can manage to set a good budget worksheet apart from a poor one.
An un-attended checkbook can cause your budget spreadsheet to reflect money that you may not have. It will give others un-monitored access to your checkbook. There is no happy end to an un-attended checkbook. If you do not understand your spending habits, and control your financial picture by the means of a home budget or budget spreadsheet. Soon, very soon, your money will be needlessly in someone else`s bank account!
Setting up your financial budget as a joint venture for the whole family can be a fulfilling and satisfying experience. If you have not had success with managing your finances in the past, then setting up a budget will put your economic situation into perspective and serve several purposes all at once, helping you to make cuts in the spending habits that went un-noticed previously. Getting your specified budget down on paper can be boring at first - but once you master the art, you may find that you will enjoy the challenge and rewards of sticking to your budget.
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